IMPACT OF COMPETITIVE ADVANTAGE DIMENSIONS ON PROJECT

ORGANISATION COMMITMENT UNDER THE MODERATING ROLE OF

PROJECT ETHICAL LEADERSHIP.
Saleem M. Kashif
Research Scholar MS Project Management
Riphah International University, Islamabad

Abstract:
The current study aimed at examining the impact of competitive advantage dimension

reaching better level of organisational commitment through the moderating influence of

ethical leadership. Dimensions of competitive advantage were employed including (quality,

responsiveness, innovation and efficiency). Quantitative approach was adopted in order to

realise main aim of the study. A questionnaire was employed as to gather data from 65

individuals within Private construction sector of Islamabad and Rawalpindi. Statistical

Analysis was performed on the data, using the SPSS software. Result of study indicated that

the main aim was realised, and ethical project leadership moderates the relationship between

competitive advantage and project organisational commitment. Our findings contribute to the

existing body of literature of how ethical project leadership can moderate the relationships

among the competitive advantage adopted by organizations and project organizational

commitment.

Key Words: Competitive Advantage, Organisational Commitment, Ethical Leadership

Cite this Article (Proposed): Saleem M. Kashif, Impact of Competitive Advantage
Dimensions on Project Organisation Commitment Under the Moderating Role of Project
Ethical Leadership, International Journal of Project Management (IJPM), 12(5), 2021, pp.
xx-yy.

1.0 Introduction:

Research on organizational commitment spans over four decades and remains an area of

interest to researchers. Initially commitment was defined and studied as one-dimensional

construct tied to one’s emotional attachment to an organisation (Porter et al., 1974).

Development in organisational commitment area progressed into a multidimensional

framework was adopted based on three distinct but connected types of commitment:

affective, continuance and normative (Allen and Meyer, 1990). Organisational commitment’s

affective dimension implies to the emotional attachment and involvement to the organisation

while perpetuation commitment symbolizes the recognized costs of leaving an organization

(Meyer and Allen, 1991). Normative commitment which is the new domain of the

organisational commitment is viewed as believed responsibility to support and remain a

member of an organization (Allen and Meyer, 1990). Then development in the field of

commitment theory and research, Meyer and Herscovitch (2001) recommend restricting

outcome variables to two main classes: focal and discretionary. Focal variables deal with the

variables related to the withdrawal from the organization while discretionary variables are

extra role activities that benefit the organization such as citizenship behavior. Cohen (2007)

takes a two-dimensional model approach in order to avoid an overlap with predictive

intentions and outcome variable of behavior. Therefore, overcame the unclear understanding

between affective commitment and normative commitment and defined normative

commitment as propensity to predict former one. His theory here emphasizes affective

organisational commitment as the highest order form of commitment comparing the basic

instrumental one. Somers (2009) suggest research in organisation commitment should focus

on the combined influence of commitment on work outcomes.

In new competitive economy and information age Intellectual capital has become the real

capital of organizations. Intellectual capital is a key factor that plays the main role in the

process of innovation, change, creativity, transform knowledge into value and then to a

competitive advantage. Central point in value generation has shifted from the exploitation of

natural (material) resources to the exploitation of intellectual (intangible) assets. This

approach is creating the appropriate environment, caring for the human element and

motivating it to make the greatest possible effort, which leads to improving the performance

of the organization through used the policies, technologies, and programs that serve both the

organization and the individual (Amos, Pearse, Ristow, & Ristow, 2016). The commitment

appears in the worker’s effort to make additional efforts at the workplace. Therefore,

individuals committed to their organizations are a source of strength to aid their survival and

to compete with other organizations (Jafri, 2010). Allui and Sahni (2016) emphasize due the

developments in the world in the fields of globalization, international competition,

innovation, and technology have emphasized a great deal of importance of committed

human resources management to achieve competitive advantage, considering that human

capital is the most prominent and is the only one achieving this sustainable competitive

advantage. Many researches are showing the relationship of competitive advantage with staff

empowerment and organisational success. But this domain that I choose to explore further is

not researched. I think the relationship of the competitive advantage domains with the project

organisational commitment under the influence of ethical leadership is one such relationship

which will explore that ethical project leadership will make the relationship effective between

competitive advantage domains and project organisational commitment (Mashari, 2021)

Current study aimed at examining the influence of competitive advantage on project

organisational commitment through focusing on the moderating influence of ethical leadership.

From this aim the following question arises:

How ethical project leadership effectively moderates the relationship between competitive

advantage domain and project organisational commitment?

Answering the above question was done through answering the following questions:

 How competitive advantage domain can be a driver to better commitment in a project

organization?
  What is the relationship between competitive advantage domain and ethical leadership?

 Can ethical leadership support a enhanced commitment for the organization through

focusing on competitive advantage domain (quality, responsiveness, innovation,

efficiency)?

2.0 Literature Review:

2.1 Organisational Commitment

A comprehensive definition of commitment is very hard so does the definition of the
organizational commitment. However, we can find common factors to various definitions.
Common to all of these, “employees who are strongly committed are those who are least
likely to leave the organization” (Allen & Meyer 1990, 1). The attitude and emotions are
strongly linked with the concept of commitment. Commitment regardless to a relationship, an
organization, a goal, or even an occupation involves emotional attachments, as well as
evaluations of whether current circumstances are what one expected or might expect in the
future. Organizational commitment includes three elements (Porter, Steers, Mowday &
Boulian, 1974):
1. A sense of identification with the organization’s goals.
2. A sense of participation in organizational duties.
3. A sense of loyalty to the organization.
Commitment termed as a shared belief and acceptance of the values and goals of the
organization and the readiness to go above and beyond the call of duty to enhance the
organization’s goals and values, as well as the desire to maintain membership with the
organization (Lee & Mitchell, 1991).
Practitioners in the field of Organisational along with the literature on organisational
behaviour have always given importance to the antecedents and outcomes of employee
commitment in explaining organisational behaviour (Zehir, Muceldili & Zehir, 2012). In a
chaotic and competitive economy as we are experiencing in the 21st century, there is a
remarkable deterioration of physical and emotional attachments of employees towards the
organisation, resulting in higher number of absenteeism and turnover intention. Employees
are more flexible and thus their dependency on a single organisation is decreasing, which
demands new ways of addressing their organisational connection patterns and commitment
(Grant, Dutton & Rosso, 2008). Organisational commitment is defined as the comparative
power of employees’ relationship with and commitment to a particular organisation, the
extent to which they are likely to work on its behalf, and the likelihood of them being stay
with the organisation for long term (Mowday et al. ,1982). Organisational commitment is
based on the following three aspects:

 Affective commitment – the extent to which employees are psychologically and

emotionally attached to, identify with, and are involved in the organisation. The clear-
cut affection is suggesting the long-lasting commitment of the employee.
 Continuance commitment – the degree to which employees yearn and intentionally
decide to stay with the organisation, which shoots from the physical, cognitive, and
emotional investment they have made in the organisation and makes separation from
it an unappealing choice.
 Normative commitment – the extent of employees’ sense of obligation to an
organisation.
It appears that employees believe that they ought to stay with an employer because it is
ethically right to continue to work for the same employer or organisation. Fair treatment and
motivation from the supervisors may inculcate a very strong sense of trust and loyalty toward
their superiors, thus developed a sense of duty to remain with the organisation (Zehir,
Erdogan & Basar, 2011). Similarly, Hansen, Alge, Brown, Jackson and Dunford (2013) add
that unfair treatment towards the employees force them to less likely feel motivated to devote
in the organisation or to cultivate feelings of long-term commitment to the leadership or the
organisation.

Likely to the social exchange perspective, employees’ emotional attachment to an

organisation suggests that they are more committed after having evaluated the pros and cons,
following their resignation or the intent to resign (Coetzee, Mitonga-Monga & Swart, 2014;
Kuo, 2013). Organisational commitment acts as a vital factor between employee and
organisation connection, provides consistency, and encourages employees to dedicate their
efforts to addressing external influences and meeting customer demands (Kuo, 2013; Zehir,
Sehitoglu & Edgan, 2012). Organisational commitment can be differentiated from exchange-
based forms of motivation and target-relevant attitudes. According to Madsen, Miller and
John (2005), organisational commitment impacts employees’ behaviour and attitudes, even
when there is no external motivation. Employees with sense of success and self-satisfaction
have a propensity to be psychologically and emotionally committed to the organisation
(Hansen et al., 2013).
There are numerous different factors that have been shown to precede organizational
commitment. Antecedents have been widely studied and Meyer et al. (2002, 28–32) came up
with four antecedent categories after a wide meta-analysis. First, organizational commitment
seems to be related to demographic variables, such as age, gender, education and length of
service in one organization. Second, they found that work experiences, like organizational
support, role conflict and role ambiguity, have an effect on organizational commitment. Third
group is availability of alternatives and investments, including transferability of education
and skills. Fourth, there are individual differences, like external locus of control and task self-
efficacy.

The literature also provides evidence about how ethical leadership relates to employees’
commitment.

2.2 Ethical leadership

Ethical leadership is an important topic for scholars and practitioners and has been described
in many ways. Kanungo and Mendonca (2001) and Hassan, Wright and Yukl (2014) note that
ethical leaders engage in behaviours that benefit others, while Khuntia and Suar (2004) posit
that ethical leaders incorporate moral principles into their values, beliefs and actions. Brown,
Trevino and Harrison (2005) define ethical leadership as the “demonstration of normatively
appropriate conduct through personal actions and interpersonal relationships, and the
promotion of such conduct to followers through two-way communication, reinforcement, and
decision making”. Organisational and management literature on leadership ethics suggests
that ethics and integrity are at the centre of leadership studies (Ciulla, 1995; Laurie, 2014).
The ethics of leadership facilitates an understanding of a leader’s behaviour and provides an
answer to the question of what differentiates effective from ineffective leadership. Northouse
(2010) posits that ethics is central to leadership: it may impact on leaders’ values and
relationships with followers and help them to establish clear and congruent organisational
values. Leaders’ values are found to influence employees’ intentions, ethical behaviour and
attitudes (Watson, 2010). Ethical leadership has been found to influence employee behaviour
in terms of organisational commitment and job satisfaction (Brown et al., 2005; Hassan,
Wright & Yukl, 2014). Key aspects of ethical leadership include the following (Kalshoven,
Den Hartog & De Hoogh, 2011):
 Fairness – the extent to which the leader treats others with respect, honesty and
fairness, and without favouritism.
  Power sharing – the extent to which the leader listens to followers’ ideas and
concerns and allows them a say in decision making.
 Role clarification – the extent to which the leader clarifies responsibilities,
expectations and performance goals to ensure that followers know what is expected of
them.
 People orientation – the extent to which the leader shows genuine care, respect and
support for followers and ensures that their needs are met.
 Ethical guidance – the extent to which the leader communicates extensively with
employees about ethics in terms of expectations, rules and rewards.
 Concern for sustainability – the extent to which the leader is concerned about impacts
on stakeholders and society.
 Integrity – the extent to which the leader aligns what is said to what is done, keeps
promises, behaves consistently, and is trusted and believed by followers.
2.3 Competitive Advantage
The concept of competitive advantage is a real revolution in the contemporary world of
business management at the academic and scientific level (Mahasneh et al., 2020).
Academically, management is seen as a dynamic and continuous process aimed at addressing
many internal and external problems to achieve continuous excellence for the organization,
suppliers, buyers, and others (Rashid et al., 2019).
Competitive advantage is basically the organisational ability to employ new methods that are
more effective than that of their competitors, as it can symbolize this discovery in the field
simply by producing a creative process in its broad sense (Rashid et al., 2019). As for Kiyabo
and Isaga (2020) competitive advantage is an element of organisation’s superiority which is
achieved by following the specific strategy to compete. On the other hand, Duffett et al.
(2018) defined competitive advantage as the ability of the organization to fulfil the needs of
the consumer or the value obtained from that product, for example the short supply period or
the high quality of the product.
The definition of the competitive advantage concludes that the ability to fulfil the desires of
consumers, provided that the consumer is the judge in the market, so customer satisfaction if
the primary goal of the organisations (Al-Qershi et al, 2020). We can deduce that competitive
advantage means provision of distinct products / services from the competitors in the market
and satisfying customers in a different or more than them Economic corporation achieving a
competitive advantage by developing a competition strategy based on the results of internal
analysis of the surrounding environment (Altarawneh, 2017).

2.3.1Dimensions
Competitive advantage is based on the existence several dimensions that together constitute
the absolute meaning of competitive advantage, which are:
2.3.1.1Cost
The organizations that seek to gain a greater market share as a basis for their success and
supremacy are the ones that offer their products at a lower cost than their competitors.
Organisations competing through cost have the main operation goal to reduce the cost
(Rahim et al, 2019). Even organizations that compete through competitive advantages other
than cost, they seek to achieve low costs for the products they produce (Kalashi et al, 2020).
Operations management seeks to reduce production costs compared to competitors and to
reach competitive prices that enhance the competitive advantage of products in the market
(Hurmelinna-Laukkanen et al, 2018).
2.3.1.2 Quality
Quality is one the of major and vital dimension of the competitive advantage. According to
Cantele and Zardini (2018), that quality is an important competitive advantage, which
indicates how things are doing correctly to provide products that match the needs of
customers; customers want products with quality that meet the characteristics required by
them, which are the characteristics that they expect or see in the advertisement (Seyyed-
Amiri et al, 2017). Organizations that do not provide products with quality that meet the
needs and desires of customers and their expectations cannot survive and succeed in the
behavior of competition (Amer and Abdulwahhab, 2020).
2.3.1.3 Flexibility
In the 21st century the business and economic environment is so turbulent that we need to
have adaptive organisations. The who entrepreneurial environment is so rapidly changing due
factors like technology and innovations that in order to survive an organisation needs to be
flexible. Flexibility is the basis for achieving the competitive advantage of the organization
by responding quickly to changes that may occur in product design and to suit the needs of
customers (Kusumadewi and Karyono, 2019). Flexibility means the ability of the
organization to change operations to other methods, this means changing the performance of
operations as well as changing the method and time of performing operations (Tsai and Lin,
2018).
2.3.1.4 Delivery
According to Minbaeva (2018) the delivery dimension is the basic rule for competition
between organizations in the markets by focusing on reducing lead times and speed in
designing new products and presenting them to customers in the shortest possible time. There
are three factors for the delivery dimension: speed of delivery, on-time delivery, speed of
development (Bharadwaj et al, 2017) .
2.3.1.5 Innovation
Some writers and researchers add creativity as a dimension of competitive advantage Al-
Zwaylif and Taher (2020); Saeidi et al (2020); Mohammed et al (2019); and Ciurea (2017).
The opinions of writers and researchers on innovation have varied. There are many
definitions of creativity. Chengwu (2020) defined it as the process or activity that an
individual performs and produces something new. As for creativity Kaleka and Morgan
(2017), it means the product of useful ideas and the ability to adopt these ideas and put them
into practice.

H1: Competitive Advantage Dimensions – Quality positively affects organisational

Commitment.
H2: Competitive Advantage Dimensions – Responsiveness positively affects
organisational Commitment.
H3: Competitive Advantage Dimensions – Innovation positively affects organisational
Commitment.
H4: Competitive Advantage Dimensions – Efficiency positively affects organisational
Commitment.

2.4 Ethical Leadership relationship with Organizational Commitment

The ethical behavior of leaders especially increases the commitment and job satisfaction of
employees (Ahmed et al., 2012; Brown, 2005). Ghahroodi, Mohd and Ghorban (2013), Zhu
et al. (2004), Lim (2012), Toor and Ofori (2009) found in their studies that ethical leadership
positively affects organizational commitment(Brown et al., 2005). Jermier and Berkes (1979),
Gomes (2009) and Kappagoda (2012) also indicated in their studies that organizational
commitment affects job satisfaction positively. Recent studies have examined the relationship
between ethical leadership and followers‟ outcomes, including: affective commitment
(Hansen et al., 2013), job satisfaction, organizational commitment, work motivation (Toor
and Ofori, 2009), and extra-role behaviors, like voice behavior, organizational citizenship
behavior, and relation-oriented behavior (Brown and Trevino, 2006; Mayer et al., 2009;
Sirca, 2013). The relationship between employee and leader gets stronger when there is high
level of trust between two parties. Ethical leadership plays a key role to establish trust-based
relationship between employee and leader and the employee feels satisfied (Brown et al.,
2005; McMurray et al., 2010; Sendiaya and Pekerti, 2010). In the last decade, researchers
have focused on the role of ethical leadership (Brown and Trevino, 2006; Trevino and
Brown, 2004) and associated outcomes, including: satisfaction, performance, pro-social
behaviors, and deviant or counterproductive behaviors (Chen et al., 2011; Kim and Brymer,
2011; Mayer et al., 2012; Piccolo et al., 2010; Walumbwa et al., 2011). Accordingly, the
hypotheses and research model of the study was developed as stated below:
2.5 Competitive Advantage (Quality) is a driver of improved Organisational
Commitment:
Total Quality Service and organisational commitment are the important antecedents for the
organisational success. Employees recognise that when management adopts TQM, it benefits
the business and improves organisational commitment (Chih and Lin, 2009). Successful
implementation of TQS increases the possibility that employees will be motivated to perform
well and stay in the organisation. Moreover, employees’ commitment is essential for a TQM
strategy to succeed, since it favours their tendency to work within their own authority and to
contribute with feasible proposals to solve various problems (Pun et al., 2001). Further,
increased employee’s commitment leads to successful quality implementation in the
organisation. An organisation can motivate its employees to behave in a desired manner
through internal marketing by creating a climate conducive to optimal performance
(Gronroos, 1990). Furthermore, with supportive leadership of the top management, the
internal customers of the organisation, i.e., employees are better cared for and are satisfied to
serve the external customers. Hence, it is hypothesised that:
2.6 Competitive Advantage (Innovation) is a driver of improved Organisational
Commitment:
Employees’ commitment is their belief that the organisation’s human resource management
practices are based on treating employees with fairness and attracting skilled employees
(Daniel, 1988). Organisational commitment is a psychological state that reflects the intention
of the employee to stay with or leave the company (Meyer and Allen, 1991). Employees must
believe that their opinions are valued and considered. If employees are encouraged to
participate and their inputs are consistently and genuinely enlisted, it is expected to increase
commitment and performance and sometimes even enhance the acceptance of relatively
negative decisions (Soumyaja et al., 2011). Thus, the leader’s role is to make sure that the
direction is as clear as possible, that there is commitment to the direction and that employees
are authorised to accomplish what needs to be done and are held accountable (Warrick,
2011). Equally important, managers have to understand that employee engagement is a long-
term and ongoing process that requires continued interaction over time and stress the point
that engagement involves all levels of the organisation (Saks, 2006). Table 3 illustrates
organisational commitment and innovation management.
H5: Ethical leadership moderates the relationship between Competitive Advantage
Dimensions – Quality and organizational commitment, such that increase in ethical
leadership strengthens the relationship.

H6: Ethical leadership moderates the relationship between Competitive Advantage

Dimensions – Responsiveness and organizational commitment, such that increase in
ethical leadership strengthens the relationship.

H7: Ethical leadership moderates the relationship between Competitive Advantage

Dimensions – Innovation and organizational commitment, such that increase in
ethical leadership strengthens the relationship.

H8: Ethical leadership moderates the relationship between Competitive Advantage

Dimensions – Efficiency and organizational commitment, such that increase in ethical
leadership strengthens the relationship.

2.2 Research Model:

3.0 Research Methodology:
3.1 Research design

Research design is a framework of research plan of action. Zikmund (2003) defines research
design as a plan of the researcher that defines the procedure and method for collecting and
analysing the necessary information. Research design includes time horizon, types of setting
and unit of analysis which are discussed below.

3.1.1. Types of study

The current study was explanatory in nature, focusing on the hypothesis testing based on
hypothetic deductive methods. Method of investigation was causal, by testing the cause and
effect relationship between safety leadership, attitude towards safety, and safety compliance.
While the interactive effect of attitude towards safety and safety consciousness on safety
compliance was tested.

3.1.2. Study setting

The participant for study from the construction field because the supervisor and their
subordinate contacted in project base private construction organization was contacted to fill
the questionnaire in their natural work environment. The data were collected in one month for
this study, the data in nature cross sectional and collected at one time.

3.1.3. Unit of Analysis

In this study the unit of analysis were Individuals. 70 questionnaires were distributed 66
genuine responses were collected. For this study unit of analysis was individual public and
private project base organizations employees from Islamabad and Rawalpindi.

3.1.4. Population

The population utilized in this study includes project managers/supervisors and employees
working under them in different project-based organizations in Pakistan. Pakistan is the 5th
most populous country in the world, with 220 million citizens, more than 60 million strong
labor force and a growing middle class. The sector employs 7.61% of the employed Pakistani
labour force. GFCF (Gross fixed capital formation) in private sector grew by 20.6%
between FY2019 and FY2020. Pakistan’s construction sector provides up to 380 billion PKR
in GDP. 325,000 individuals are working at managerial or supervisor level out of which 60%
are working in the private sector. Each questionnaire has an attached cover letter explaining
the purpose of the study to the respondents. Questionnaires were filled by the willingness to
participate by the employees. Cover letter also explains that the present data will be used for
academic purposes without highlighting any particular organization or employee.
Furthermore, confidentiality of information to employees was also ensured in order to drive
out their hesitation in filling the questionnaire.

3.1.5. Sample

Keeping in view the true reflection of population, the Nonprobability sampling method used
in the study to collect data. Convenience sampling technique incurs relatively less time and
financial costs as compared to other sampling techniques, therefore it was instrumental in
selecting the sample size quickly and efficiently. The data collection was done from private
construction sector of twin cities (Rawalpindi and Islamabad) of Pakistan. It is somehow hard
to identify the total number of employees working in this sector, but this sector has shown
significant growth in the past 5 years. This sector has contributed significantly in different
parts of Pakistan as well. Due to the large number of population of this sector, it is not
possible to cover all employees due to different constraints such as time scarcity, resource
scarcity and cost. Hence a sample was selected to collect data from this industry. The sample
size selected for this study was 70. In line with appropriate sample size for the population
suggested by Krejcie and Morgan (1970), the total numbers of 70 questionnaires were
distributed via google form to different private construction companies. Some of the private
construction companies are listed below;
For this research 70 questionnaires were distributed, and 66 questionnaires were received
back for data analysis. The respondent response rate was 94% out of 100% which is highly
positive response. Thus, data analysis used the final sample size of 66. The sampling strategy
used in this study is nonprobability sampling i.e., convenient, and judgmental sampling. The
companies were first contacted with reference person and the respondents were requested to
take part in a survey. Questionnaires were sent through emails with the link of google form
for their convenience.

3.2 Instrumentation

3.2.1 Measures

The data was collected through the questionnaires selected from different authentic sources
through adoption of those questionnaires. Questionnaires were distributed in English. All the
items Competitive Advantage Dimensions (Quality, Responsiveness, Innovation and
Efficiency), Ethical Leadership and organisational Commitment are filled by project leader
and employees/subordinated/labour. All the items of the questionnaire are to be filled on a 5-
points Likert-scale where 1 represents (strongly disagree), 2 represents (disagree), 3
represents (Neither agree nor disagree), 4 represents (Agree) and 5 represents (strongly
agree).
3.2.1.1 Dimensions of Competitive Advantage

Competitive Advantage was measured using the Competitive advantage dimensions Scale
(Hill, C.W.L., Jones, G.R. and Schilling, M.A. (2015), Strategic Management Theory, 11th
ed., Cengage Learning.). A 20- items scale having four dimension Quality, Responsiveness,
Innovation and Efficiency was used in the research paper Responses were made using a 5-
point scale ranging from 1 (strongly disagree) to 5 (strongly agree).

3.2.1.2 Ethical Leadership

Ethical Leadership was measured using the Ethical Leadership Scale (Bavik, Y. L., Tang, P.
M., Shao, R., & Lam, L. W. (2018). Ethical leadership and employee knowledge sharing:
Exploring dual-mediation paths. The Leadership Quarterly, 29(2), 322-332). A 07 - items
scale was used in the research paper Responses were made using a 5-point scale ranging from
1 (strongly disagree) to 5 (strongly agree).

3.2.1.3 Organisational Commitment

Organisational Commitment was measured using the Organisational Commitment Scale

(Cook, J., & Wall, T. D. (1980). New work attitude measures of trust, organizational
commitment and personal need for non-fulfilment. Journal of Organizational and
Occupational Psychology, 53, 39-52.). A 09 - items scale was used in the research paper
Responses were made using a 5-point scale ranging from 1 (strongly disagree) to 5 (strongly
agree).

3.3 Research Analysis

Data and figures collected through questionnaire for analysing, SPSS (Statistical Package for
the Social Sciences) was used. The statistics has been verified for investigating the
correlation, regression and moderating analysis. For evaluating the relationship or connection
of independent variable is linked with the dependent variable through correlation analysis.
Regression analysis is used to inspect to know the accurate deviation in independent variable
produced modification in dependent variable.

3.3.1 Descriptive Analysis (Sample Characteristics)

In the total sample of 66 of the population, no of respondents of male were 52 and female
were 14, having percentage of the overall sample 78.79% and 21.21% respectively. As
expected, male employees are working in majority then female colleagues, thus showing
consistency with perceptions about that Pakistani culture male dominant society as well as
male dominant employees in the construction sectors. From the sample of respondents’
majority were young. The respondent between age 21 to 30 years were 33, they contributed
50% of the entire responses of the current study. The middle-aged responders range from 31
to 50 years were 30 making percentage of 45.45% of the total sample, and the responded of
age 50 years and above were 3, having percentage of 4.55% of the total responded sample.
For the marital status from the sample of respondents, the data is equally divided into two
groups, 33 are single and 33 are married. For the qualification from the sample of
respondents, the Bachelors level is 15 have percentage of 22.7%, while the Masters level is
the greatest figure among the respondents which is 35 having percentage of 53.0%, M.Phil. /
M.S. level qualification is 13 in numbers and having percentage of 19.7%, the contribution
from Others level respondents is 3, having percentage of 4.5% of the total sample size. For
the experience from the sample of respondents, the “less than 5 years” is 27 have percentage
of 40.9%, while the “5-10 years” is 10 having percentage of 15.2%, “11-15 years” is 15 in
numbers and having percentage of 22.7%, the contribution from “16 + Years” is 14, having
percentage of 21.2% of the total sample size. For the work status from the sample of
respondents, the “Permanent Employee” is 55 have percentage of 83.3%, while the “Part-
time employee” is 11 having percentage of 16.7%.

Table: Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Male 52 78.8 78.8 78.8
Female 14 21.2 21.2 100.0
Total 66 100.0 100.0

Table: Age
Cumulative
Frequency Percent Valid Percent Percent
Valid 21 - 30 Years 33 50.0 50.0 50.0
31 - 40 Years 17 25.8 25.8 75.8
41- 50 Years 13 19.7 19.7 95.5
51- 60 Years 3 4.5 4.5 100.0
Total 66 100.0 100.0
 Table: Marital Status
Cumulative
Frequency Percent Valid Percent Percent
Valid Single 33 50.0 50.0 50.0
Married 33 50.0 50.0 100.0
Total 66 100.0 100.0

Table: Education
Cumulative
Frequency Percent Valid Percent Percent
Valid Bachelors 15 22.7 22.7 22.7
Masters 35 53.0 53.0 75.8
M. Phil. / MS 13 19.7 19.7 95.5
Others 3 4.5 4.5 100.0
Total 66 100.0 100.0

Table: Experience
Cumulative
Frequency Percent Valid Percent Percent
Valid Less than 5 years 27 40.9 40.9 40.9
5 - 10 Years 10 15.2 15.2 56.1
11 - 15 Years 15 22.7 22.7 78.8
16-20 Years 6 9.1 9.1 87.9
More than 20 Years 8 12.1 12.1 100.0
Total 66 100.0 100.0

Table: Work Status

Cumulative
Frequency Percent Valid Percent Percent
Valid Full Time 55 83.3 83.3 83.3
Part Time 11 16.7 16.7 100.0
Total 66 100.0 100.0
3.3.2 Control variables

In this study demographics were also considered so responses related to demographics were
also collected. It is obligatory to check the relevance and significance of the demographics
variables which are Gender, Age, Marital Status, Education, Experience and Work Status
with Dependent Variable which in our case is Organisational Commitment. In order to check
whether demographic variable influence Organisational Commitment or not we run one-way
ANOVA analysis. Results we got after running this test are given below.

Table: Control Variables

Demographics Organisational Commitment

f statistics p value
Gender 4.648 0.035*
Age 2.011 0.122ns
Marital Status 2.262 0.137ns
Education 2.608 0.59ns
Experience 2.089 0.093ns
Work Status 0.01 0.980ns
* p<.05, ** p<.01 *** p<.001, ns =non-significant

Demographics variable “Gender” is showing the significance of p value hence this variable
needs to control in order to determine the effect of IV and moderator on the DV.

3.3.3 Reliability of scales

Under given tables depicts the reliabilities of different scales used in this research. In order to
find these values of Cronbach Alpha reliability analysis through SPSS was done.

Table: Reliability Analysis

Cronbach’s
Variable Name Mean Alpha
Dimension of Competitive Advantage - Quality 4.245 0.768
Dimension of Competitive Advantage - Responsiveness 3.503 0.715
Dimension of Competitive Advantage - Innovation 3.885 0.656
Dimension of Competitive Advantage – Efficiency 3.879 0.710
Ethical Leadership 3.978 0.759
Organizational Commitment 3.731 0.597
Cronbach’s Alpha value at-least 0.70 is preferable.
The objective behind running a reliability test is to check whether the scale is reliable of not.
In other words, it shows that whether scale is consistent with the results or not. The value
which determines the reliability of the scale is Cronbach Alpha which ranges from Zero to
One (0-1). As this constant move nearer to 1 it means higher reliability and as it moves near
to 0 it means low reliability. The adequate and acceptable level of Cronbach Alpha is 0.7. if
any variable has 0.7 as value of Cronbach Alpha it means that results are reliable. Due to low
number of sample the Cronbach Alpha of “Dimension of Competitive Advantage –
Innovation” and “Organisational Commitment” is low.

3.3.4 Correlation Analysis

Correlation analysis is carried on in order to explore the relation between variables. It shows
the relation between the variable irrespective of direction. It only focuses that whether
variables are related to each other or not. The condition which is to be applied on variables
whose correlation is to be calculated is that they should be continuous variable in nature, and
they must be measured by using numbers. Correlation analyses come handy when the aim of
researcher is to investigate the potential connection among variables. A wrong perspective of
correlation analysis has been widely spread that effect and cause is established by it. But this
is not true because there are certain other variables which are part of current research, and
they are present in the environment which can cause a change in the other variable.
Organized change in value of one variable cause a methodological change in value other
variable, this condition can only withstand when there is correlation among two variables.
This change in value of variable on the basis of change in value of other variable is limited to
a specific time limit. Correlation value which is outcome of this analysis depends on the
value of both variables and it can be positive and it can also be negative. There are two
conditions in which correlation value can be negative and positive. In first condition when
increment in value of one variable results increase in the value of other variable then value of
coefficient would be positive. In the second condition when there is inverse relation, in other
words increase in variable cause decrease in other’s value or decline in value of one variable
results increment in value of other variable, then the coefficient of correlation would be
negative. Pearson coefficient is measure of the correlation among variables and it ranges from
+1 to -1. The more a coefficient is nearer to +1 the more it is positive relation and the more it
is near to -1, more it will be negative relation. 0 value of coefficient indicated no relation. The
given table represents the detailed depiction of relation between variables of the study.
 Table: Correlation Analysis

1 2 3 4 5 6
1. DCAQ 1
2. DCAR 0.203 1
*
3. DCAI 0.307 0.527** 1
* **
4. DCAE 0.206 0.594 0.694** 1
5. EL 0.228 0.555** 0.758** 0.795** 1
6. OC 0.164 0.612** 0.635** 0.750** 0.728** 1

Dimensions of Competitive Advantage – Quality is significantly and positively associated

with Dimensions of Competitive Advantage – Innovation and Dimensions of Competitive
Advantage - Efficiency, the value of coefficient of correlation is R= 0.307 and 0.206 and P <
0.05. Secondly, Dimensions of Competitive Advantage – Responsiveness is significantly and
positively associated with Dimensions of Competitive Advantage – Innovation, Dimensions
of Competitive Advantage - Efficiency, Ethical Leadership and Organisational Commitment
the value of coefficient of correlation is R= 0.527, 0.594, 0.555 and 0.612 and P < 0.01.
Thirdly, Dimensions of Competitive Advantage – Innovation is significantly and positively
associated with Dimensions of Competitive Advantage - Efficiency, Ethical Leadership and
Organisational Commitment the value of coefficient of correlation is R= 0.694, 0.758 and
0.635 and P < 0.01. Ethical Leadership is positively and significantly associated with
Organisational Commitment, coefficient of correlation in this case is 0.750 and value of P is
less than 0.01.

3.3.5 Regression Analysis

Regression analysis is also known as predictive analysis and most commonly used method of
regression analysis is linear regression. The concept behind the linear regression provides
answer to two major questions. First one is about the ability of independent variables that
whether they do justice in explaining the change in dependent variables and the second one is
the identification of that those independent variables which explain the significant change in
outcome. In addition to this also gives the answer about to what extent the variable explains
and direction of estimated represented by beta.
 Table: Regression Analysis:

Predictors Organizational Commitment

β R2
Step 1
Control Variables 0.124
Step 2
DCAQ - 0.50
DCAR 0.203*
DCAI 0.055
DCAE 0.263**
EL 0.217 0.672 0.548***
Step 3
EL * DCAQ 0.535
EL * DCAR 0.372**
EL * DCAI .039
EL * DCAE - 0.137 0.790 0.118***

* p<.05, ** p<.01 *** p<.001, ns =non-significant

The Regression Analysis shows the predictive capacity of IVs & moderator towards DV,
which leads to acceptance/rejection of hypothesis as per value.
β = unit change (usually in points), R2 = percentage change (almost 50%),

The model summary gives the details about how much variation in the predicted variable has
been explained by independent variable. Simple value of R is the actual Pearson coefficient,
when it is multiplied by itself, we get R Square. In results of current regression analysis, the
value of R Square is 0.124, 0.672 and 0.790 which indicates that almost 54.8% change in the
value of Dependent Variable (organizational commitment) is explained by Independent
Variable (Dimensions of competitive Advantage). The 3rd step explains the level of influence
caused by the Moderator on the influence of IVs to DV. From the above table R Square value
for the interaction terms are 0.79 which suggests that 11.8 % R Square change is due to the
moderator role which is also significant.

Secondly, the Value of Beta Coefficient tells about the change in value of Dependent
Variables (Dimensions of Competitive Advantage) if value of Independent Variable
(Organisational Commitment) experiences an increase of 1. The sign with the beta
determines the direction of this change, if it’s negative then it is decreasing and if it has
positive sign then it is increasing. Lastly, the value significant value of significance of Beta
value describes that whether it is worthwhile to examine the Beta value or not. In above table
Dimensions of Competitive Advantage – Responsiveness, Dimensions of Competitive
Advantage – Efficiency and Interaction term between Ethical Leadership and Dimensions of
Competitive Advantage- Responsiveness is showing significance.

4.0 Discussion:
The purpose of the present study was to investigate the connection between Competitive
Advantages Dimensions (Quality, Responsiveness, Innovation and Efficiency) and
Organizational Commitment through moderating effect of Ethical Leadership. Quantitative
approach was adopted in order to realize main aim of study. A questionnaire was employed
as to gather data from (66) individuals within Islamabad’s private construction sector. Study
was able to reach the following results:
 Respondents had high awareness of study variables as all their responses scored
higher than mean of scale which indicated a valid command and understanding from
their side on the presented statements.
 Competitive Advantage has the ability to influence organizational commitment.
 Competitive advantage has the ability to influence organizational commitment under
the moderating role of Ethical Leadership.
The study proved that the prevailing leadership style and the philosophy pursued by the
management in its dealings with its employees have a significant impact on the level of
creativity of the workers, and there is no doubt that the creative capabilities of the
subordinates are affected by the prevailing leadership style in their institutions. Based on the
results of the study in addition to opinions of Kadhim et al (2018); Safari et al (2020) and
Khan and Anjum (2013) it has been proven that an ethical leader can contribute to developing
the creative capabilities of employees by promoting quality of work, responsiveness of the
organization, innovative culture and organizational efficiency encouraging them in solving
problems and addressing them and presenting their solutions openly to them based on the
basics of competitive advantage enjoyed by the organization and its employees.
Consequently, the individual's awareness by the leadership of the importance of the role that
he plays in the administrative process and the provision of opportunities for him through
competitive advantage is among the motivating factors that push the individual toward the
organizational commitment. As predicted, we found a positive association between
Competitive Advantages Dimensions (Quality, Responsiveness, Innovation and Efficiency)
and Organizational Commitment. This finding implies that only one dimension of
Competitive Advantage which is efficiency plays a significant part in increasing the
organizational commitment. Thus, H4 of the study is accepted.
Study was also able to clarify that organizational commitment is influenced by the
efficiency which leads to the competitive advantage that are supported with ethical leadership
as it was agreed on by Gautam and Ghimire (2017). As it was seen through analysis that
efficiency scored the highest means indicating that they were the most positively answered
variables of all and referring to the fact that leadership does mediate the relationship between
competitive advantage and organizational commitment. This was agree on by Javed et al
(2017) when they argued that ethical leadership supports employees' organizational
identification, and at the same time plays a role in defining a better image for the organization
before the employees, this leads to igniting a feeling within individuals that they are
important for their organization, they are essential and their existence means a huge idea
which came a long also with Al-Zoubi (2012) and Phangestu (2020) As a result- Shafique et
al (2019) – employees begin to put better efforts, and present higher performance in order to
realize organizational strategies and turn its goals into actual results. On the same track,
current study appeared to meet with what came along with Duan et al (2018) who argues that
ethical leadership is one of the aspects that influences employees/ organizational
responsiveness leading them to take more creative decisions and brainstorm ideas that would
be an added value to the operations of the organization. Every project demands an efficient
organization that tells how the organizational commitment is affected. This study also found
that Ethical leadership moderates the relationship between Competitive Advantage
Dimensions – Responsiveness and organizational commitment, such that increase in ethical
leadership strengthens the relationship. Hence, H6 of the study is also accepted.
4.1 Recommendations
By shedding light on Competitive Advantage Dimensions (Quality, Responsiveness,
Innovation and Efficiency) and its impact on Organizational commitment, and the overlap of
the ethical leadership relationship with these two variables, it has been proven that
Competitive advantage depends on the type and style of leadership that is adopted, Quality,
Innovation, responsiveness and efficiency under the conscious and ethical leadership
guidance, improves the organizational commitment. From here it can be said that it is correct
to rely on the expertise and skills of the employee which will positively augment the
competitive advantage, but the conscious moral leadership and the ethical leader who takes
into consideration the interests of the employees and the organization together are the most
capable of reaching positive results centered around increasing organizational commitment.
Based on previous discussion and conclusion of study it is recommended:
 Redesigning work to achieve job enrichment through qualifying and training courses
in order to raise the level of employee skills in quality, Responsiveness, Innovation
and Efficiency.
 Encouraging workers to submit proposals that have an impact on developing their
skills and helping to expand their field of innovation/problem solving, TQM and
effective efficiency compared to the previous stage.
 Giving workers who have proven ability and skill the opportunity to participate in
decision-making, which enhances their skills, and paves the way for them to develop
further in the field of competitive advantage at a later time.
4.2 Limitations and Future Research
 This study was constraint by limited time, resources and small sample size. Future
researchers may use large sample size and more time spam to study the impact of
current model more precisely.
 This study collected data at once, future research can cover different time lags.
 This study has been conducted on sample collected from only private sector
organizations of Islamabad region. Future studies can also collect sample from private
and public sector and collective impact of both sectors can also be observed.
 Current research only analyzed few dimensions of the Competitive advantage as
independent variables. Future researchers may examine other dimensions like cost,
flexibility and delivery as independent variables such as Cost, flexibility and delivery.
 During this study it has been observed that few other variables like employee
empowerment, Inclusive/Passive/Authentic/Transformational Leadership can be
incorporated as moderators or mediators in this research model.

4.3 Conclusion
This study was carried out to better define the impact of Competitive Advantage
on organizational commitment under the moderating role of ethical leadership. The data for
study was collected through the questionnaire filled from private construction project-based
organizations. Sample of 65 employees were used for the analysis of data. The findings of the
analysis accepted 2 proposed hypotheses such as H4 and H6. This implies that this study
found positive association of Competitive Advantage Dimensions with Organizational
Commitment. Hence, competitive advantage of the organization has been encouraged in
private construction project-based organizations. Moreover, this study also supported the
significant relationship of moderator (ethical leadership) that strengthens the relationship of
Competitive Advantage and Organizational Commitment. However, 6 other Hypothesis of
study was rejected indicating. The result of current study is also supported by literature.
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 Appendix 01

Questionnaire

Dear Respondent,

I am student of graduate programme mspm at Riphah International University, Islamabad. I

am conducting research on “Does Ethical Project Leadership effectively moderate the
impact of Competitive Advantage dimensions (quality, responsiveness, innovation,
efficiency) on Project Organisational Commitment in construction sector?” You are
requested to voluntarily participate and fill the survey to the best of your knowledge and
information. Your responses will be kept confidential and resulting data will be summarized
on a general basis and not on an individual basis.

Please read the instructions carefully and answer all the questions. There are no “tricky”
questions, so please answer each item as conveniently and as honestly as possible. It is
important that all the questions be answered. Your identity will remain confidential, thus
more fair feedback is solicited. The responses will be evaluated on Likert Scale, ranging
from 1-5, and consume around 10 - 15 minutes of your good-self, accordingly.

I once again thank you for your assistance and cooperation.

Demographics

Please, put a tick mark in the space provided or fill according to the specific instructions
given.

1. Personal Details

Gender Male Female

Age 18-22 years 23-27 years 28 and above
Marital status Single Married
Level of Education Bachelors Masters MPhil/MS
Others
Work Experience less then 5 Years 5-10 years, 10-15 years 15-20 years, More than 20
years

Kindly tick the appropriate response against each item. You are requested to be honest in
answering the item as per likert scale interval:
 Strongly Disagree Neutral Agree Strongly agree
disagree
1 2 3 4 5

a) Dimensions of Competitive Advantage - Quality (IV)

Item Strongly Disagree Neutral Agree Strongly

Disagree Agree

1. Quality is one of major 1 2 3 4 5

employees' responsibilities.
2. The issue of quality is clearly 1 2 3 4 5
stated in organizational mission
and vision.
3. All employees are directed 1 2 3 4 5
towards achieving the highest
quality.
4. Many employees are asked to 1 2 3 4 5
take prompt decisions in order
to benefit quality.
5. Quality is the main target for all 1 2 3 4 5
employees.
 b) Dimensions of Competitive Advantage - Responsiveness (IV)
Kindly answer these questions as per your knowledge about IV

Item Strongly Disagre Neutral Agre Strongly

Disagree e e Agree
1. Employees have the green light 1 2 3 4 5
to take any measures in order to
satisfy customers.
2. All internal operations are 1 2 3 4 5
dedicates to achieve added value
to customers.
3. Employees are trained to meet 1 2 3 4 5
needs and desires of customers
at any price.
4. Employees are empowered in 1 2 3 4 5
order to take prompt decision to
satisfy customers.
5. All employees have direct 1 2 3 4 5
contact with customers in order
to check the level of their
satisfaction.
c) Dimensions of Competitive Advantage – Innovation (IV)

Kindly answer these questions by considering your perspective.

Item Strongly Disagree Neutral Agree Strongly

Disagree Agree
1. Employees are always exposed to 1 2 3 4 5
training and workshops in order to
develop their talents and skills.
2. Brainstorming is a part of problem 1 2 3 4 5
solving sessions.
3. Management supports innovative 1 2 3 4 5
ideas from employees.
4. Any supporting ideas are 1 2 3 4 5
welcomed from employees.
 5. Management puts into perspective 1 2 3 4 5
different abilities, skills and talents
of employees.
d) Dimensions of Competitive Advantage – Efficiency (IV)

Kindly answer these questions by considering your perspective.

Item Strongly Disagree Neutral Agree Strongly

Disagree Agree
1. Employees are supported with all 1 2 3 4 5
tools that help them complete their
tasks in an efficient way.
2. Customer satisfaction surveys are 1 2 3 4 5
launched in order to measure
efficiency of employees.
3. Employees are rewarded based on 1 2 3 4 5
their efficiency.
4. Appraisal is a vivid part within the 1 2 3 4 5
organization for good efficiency.
5. Efficiency is measured through 1 2 3 4 5
customer satisfaction and the level
of employees' empowerment.
 e) Ethical Leadership (Moderating)

Kindly answer these questions by considering your perspective.

Item Strongly Disagree Neutral Agree Strongly

Disagree Agree
1. Tasks are assigned to employees 1 2 3 4 5
according to their specialty.
2. Tasks are assigned to employee 1 2 3 4 5
equally according to their abilities
and experience.
3. Leadership is always available to 1 2 3 4 5
present any needed help.
4. Leadership makes sure that all 1 2 3 4 5
employees are empowered to
make the right decision .
5. Leadership do not assign tasks to 1 2 3 4 5
employees if they explained their
inability to complete them.
6. Leadership is always aware of the 1 2 3 4 5
necessity to empower employees.
7. Empowerment makes employees 1 2 3 4 5
feel as contributors.

f) Organizational Commitment (DV)

Item Strongly Disagree Neutral Agree Strongly

Disagree Agree
1. I am quite proud to be able to tell 1 2 3 4 5
people who it is that I work for.
2. I sometimes feel like leaving this 1 2 3 4 5
employment for good.
3. I'm not willing to put myself out 1 2 3 4 5
just to help the organization.
4. Even if the firm were not doing 1 2 3 4 5
too well financially, I would be
reluctant to change to another
 employer.
5. I feel myself to be part of the 1 2 3 4 5
organization.
6. In my work I like to feel I am 1 2 3 4 5
making some effort, not just for
myself, but for the organization as
well.
7. The offer of a bit more money 1 2 3 4 5
with another employer would not
seriously make me think of
changing my job.
8. I would not recommend a close 1 2 3 4 5
friend to join our staff.
9. To know that my own work had 1 2 3 4 5
made a contribution to the good of
the organization would please me.

Thank you for your time